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Humana Wikipedia

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Humana Inc.
Traded asNYSE: HUM

S&P 500 Component
IndustryManaged health care
FoundedLouisville, Kentucky (1961)
HeadquartersLouisville, Kentucky, United States
Key peopleDavid A. Jones, Sr. and Wendell Cherry, co-founders

Bruce Broussard, CEO and President
  • Increase US$ 41.313 billion (2013)
  • Increase US$ 39.126 billion (2012)
Operating income
  • Increase US$ 2.061 billion (2013)
  • Decrease US$ 2.016 billion (2012)
Net income
  • Increase US$ 1.231 billion (2013)
  • Decrease US$ 1.222 billion (2012)
Total assets
  • Increase US$ 20.735 billion (2013)
  • Increase US$ 19.979 billion (2012)
Total equity
  • Increase US$ 9.316 billion (2013)
  • Increase US$ 8.847 billion (2012)
Employees52,000 (1Q 2014)
Humana Inc. is a for-profit American managed health care company that markets and administers health insurance in the United States, and has business interests in Western Europe and Asia. Humana has over 13 million customers in the United States, reported a 2013 revenue of US$41.3 billion, and has over 52,000 employees. The company is based in Louisville, Kentucky.

Humana was investigated by U.S. Dept. of Health and Human Services for sending flyers to MediCare recipients that were characterized by the AARP as being deceptive. The company's managed care model has also been criticized for ethical lapses and limitations.

In 2013 the company ranked 73 on the Fortune 500, which makes it the highest ranked (by revenues) company based in Kentucky. It is also the third largest health insurance provider in the nation.



      1961-1983: Nursing homes and hospitals

      The company was founded by David A. Jones, Sr. and Wendell Cherry as a nursing home company in 1961. Then known as Extendicare, the company became the largest nursing home company in the United States.[citation needed] Extendicare later divested the nursing home chain and moved into purchasing hospitals in 1972, becoming the world's largest hospital company in the 1980s.[citation needed]

      The corporate name was changed to Humana Inc. in 1974. Humana experienced growth period in the years that followed, both organically and through the takeover of American Medicorp Inc. in 1978, which doubled the company's size.[citation needed] During the mid-1970s, the company used a fast-track construction process to complete and open one hospital a month.[citation needed] During this period Humana developed the double corridor model for hospital construction. This design minimized the distance between patients and nurses by placing nursing support services in the interior of the building with patient rooms surrounding the perimeter.[citation needed]

      1984-present: Health insurance

      As the American health care system changed in the 1980s, Humana began marketing health insurance products.

      The 1990s marked Humana's transition into a consumer health benefits company. Humana spun off its hospital operations from the health insurance operations in 1993, creating Galen Health Care, which then merged with Columbia/HCA.

      United Healthcare attempted to acquire Humana in 1998. United's effort failed when it reported an almost billion-dollar quarterly loss.[citation needed]

      In 2001, Humana partnered with Navigy, Inc., a subsidiary of Blue Cross and Blue Shield of Florida, Inc., to launch Availity.[citation needed]

      In 2005, Humana entered into a business partnership with Virgin Group, offering financial incentives to members for healthy behavior, such as regular exercise.[citation needed]

      On November 16, 2006, The Centers for Disease Control and Prevention (CDC) and Humana Inc. entered into a partnership with the aim of expanding on traditional private-sector approaches to population health management.

      In 2006, Humana launched an education campaign to market Medicare Advantage (MA) and Prescription Drug Plans (PDP) nationwide to Medicare eligible consumers, following the passage of the Medicare modernization act.

      Humana also launched RightSource, a national mail-order retail pharmacy business in 2006.[citation needed]

      In its March 2008 issue, Fortune Magazine named Humana one of the Top 5 Most Admired Healthcare Companies in the United States.

      In May 2011, Humana announced that they would be using mobileStorm to allow transmission of protected health information to patients. The service is the first HIPAA-compliant messaging platform.

      Corporate affairs


      Humana headquarters at the Humana Building in Louisville, Kentucky
      The Humana Building in Louisville, Kentucky is an example of postmodern architecture designed by Michael Graves and completed in 1985. Humana sponsored an architectural competition to determine the design of its headquarters building. Scale models of the participants (including the submissions of Helmut Jahn, I. M. Pei, Michael Graves and others) are contained in a vestibule located directly above the Main Street entrance.[citation needed]

      Humana also operates a mail-order facility, RightSourceRx, which operates in Phoenix, Arizona and West Chester, Ohio.

      Humana call centers are located in Cincinnati, Ohio and other areas.


      PGA Tour player David Toms[citation needed] and LPGA player Nancy Scranton are both spokespeople for Humana. Humana is the official health benefits provider of the PGA Tour and Champions Tour.

      The Humana Distaff Handicap is a Grade 1 race for thoroughbred fillies and mares, four-years-old and up. The race is run each spring on Kentucky Derby day at Churchill Downs and set at a distance of 7 furlongs for a purse of $250,000.[citation needed]

      Humana is the presenting sponsor of the Grand Ole Opry.

      Since 1979 Humana has been a principal sponsor of the annual Humana Festival of New American Plays in Louisville, Kentucky.

      Humana Military Healthcare Services

      Humana Military Healthcare Services (HMHS) is a wholly owned subsidiary of Humana. Since 2004, HMHS has acted as the Managed Care Support Contractor for the United States Department of Defense Military Health System TRICARE South Region. In 2009, HMHS' Managed Care Support Contract was awarded to United Military and Veterans Services, a subsidiary of UnitedHealth Group. HMHS protested that decision. The protest was upheld in late 2009 by the Government Accountability Office.[citation needed]


      In 1987, Humana sued NBC over a story line in the television medical drama St. Elsewhere whereas the hospital was to be sold to a for-profit medical corporation and renamed "Ecumena", with subsequent changes to the hospital, both positive and negative, emanating from that change. Humana was successful at forcing NBC into showing a disclaimer at the beginning of the September 30 episode saying that the drama had no connection whatsoever with Humana.

      On May 30, 1996, Linda Peeno, who was contracted to work for Humana for nine months, testified before Congress as to the downside of managed care. In the testimony, Peeno says she was effectively rewarded by her employer for causing the death of a patient because it saved the company a half-million dollars. Peeno stated that she felt the "managed care" model was inherently unethical.

      Video of Linda Peeno's testimony appeared in Michael Moore's 2007 documentary Sicko. On June 28, 2007, in a statement about the movie, Humana declared that Peeno was never a Humana "associate" (permanent, full-time employee), but rather a "part-time contractor". Humana also disputed the portions of Congressional testimony that were shown by saying that because the patient's specific healthcare plan didn't cover heart transplants, the denial of coverage was valid.

      Humana was also featured in Season One of Moore's The Awful Truth, shown refusing to give a pancreatic failure sufferer authorization for a transplant due to a contradictory policy that stated that all of this man's diabetes related expenses were covered by his plan (his pancreas was failing due to his diabetes) but in another section, it said that it wouldn't cover organ transplants. Moore conducted a fake funeral on the front steps of Humana for the man who was sure to die without the transplant. Three days later, Humana changed their policy and authorized the man's treatment. This scene was the inspiration for Sicko.[citation needed]

      On September 21, 2009 the U.S. Department of Health and Human Services opened an investigation into mass mailings sent by Humana to elderly Medicare recipients. The mail was made to appear to contain official information about Medicare Advantage and prescription drug benefit information, but instead alleged that core Medicare benefits could be cut by the Obama administration's healthcare reform, a claim refuted by John Rother, AARP's executive vice president. Douglas Elmendorf, the head of the Congressional Budget Office, later supported the claim that Medicare benefits would be cut. However, his comments were in reference to just one of several bills being drafted in Congress, and CBO estimates of another healthcare reform bill found that changes to premiums would vary. The Centers for Medicare and Medicaid Services instructed Humana to cease all such mailings to Medicare plan members pending an investigation. HHS Secretary Kathleen Sebelius, in a letter to the insurance industry, threatened that bad actors may be excluded from new health insurance markets that will open in 2014. However, in a letter to Kathleen Sebelius, Senate Republicans pointed out that a 1997 directive from the Centers for Medicare and Medicaid Services explicitly allowed HMOs to tell members about legislation and urge them to express opinions.

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